Kingston to focus on two divisions after major restructuring

Kingston Communications, the Hull-based telecoms operator, yesterday unveiled a major restructuring of the group that will see its seven divisions merged into two in an attempt to focus operations.

Kingston Communications, the Hull-based telecoms operator, yesterday unveiled a major restructuring of the group that will see its seven divisions merged into two in an attempt to focus operations.

One of the new divisions, national business-to-business services, will handle the marketing of voice and data services to corporate customers. It will be headed by Jane Hannah, formerly vice president commercial and product management at BT Wireless.

The second division will consist of all Kingston's network infrastructure, including its Torch Telecom business network, which is its main source of growth, now that its core residential business in Hull has matured. The network business will also house the company's East Yorkshire network, its ADSL infrastructure business, and the UK broadband backbone network, which it is being rolled out.

Steve Maine, chief executive, said: "Kingston's success in the market has been broadly based. It is now time to consolidate a number of businesses into two national divisions; one, a service business focused on expanding our customer offering, the other a network business focused on cost-effective delivery."

ABN Amro, the company's house broker, estimated the re-organisation could boost expected earnings before interest, tax, depreciation and amortisation, by 10 per cent to £5m.

Jonathan Dann, analyst at HSBC Securities, said: "It makes sense to have the networks together in one company and it can focus on getting costs lower. The service arm can concentrate on winning business and my even buy network services from someone else."

The national business-to-business services division will be launched in December.